DA Davidson Cuts Grocery Outlet (NASDAQ:GO) Price Target to $7.00

Grocery Outlet (NASDAQ:GO) had its price objective lowered by DA Davidson from $11.00 to $7.00 in a report published on Thursday,Benzinga reports. The brokerage currently has a neutral rating on the stock.

A number of other research firms also recently weighed in on GO. Jefferies Financial Group reaffirmed a “hold” rating and issued a $7.00 price target (down from $18.00) on shares of Grocery Outlet in a research note on Thursday. Bank of America reduced their price objective on Grocery Outlet from $19.00 to $16.00 and set a “neutral” rating for the company in a research report on Wednesday, November 5th. Morgan Stanley dropped their target price on Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating on the stock in a research report on Thursday. Wells Fargo & Company cut their price target on Grocery Outlet from $10.50 to $7.00 and set an “equal weight” rating for the company in a research note on Thursday. Finally, Zacks Research lowered Grocery Outlet from a “strong-buy” rating to a “hold” rating in a report on Friday, November 14th. Eleven investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $10.68.

Grocery Outlet Stock Performance

Shares of GO opened at $6.57 on Thursday. The company has a market capitalization of $644.85 million, a PE ratio of -2.87, a PEG ratio of 1.34 and a beta of 0.50. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.25 and a current ratio of 1.37. The company’s 50 day moving average price is $9.64 and its 200 day moving average price is $12.58. Grocery Outlet has a 52 week low of $6.20 and a 52 week high of $19.41.

Grocery Outlet (NASDAQ:GO) last released its earnings results on Wednesday, March 4th. The company reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.02). The company had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.23 billion. Grocery Outlet had a positive return on equity of 5.93% and a negative net margin of 4.80%.The firm’s quarterly revenue was up 10.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.15 EPS. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Research analysts expect that Grocery Outlet will post 0.63 EPS for the current fiscal year.

Hedge Funds Weigh In On Grocery Outlet

Hedge funds have recently bought and sold shares of the business. Royal Bank of Canada lifted its position in shares of Grocery Outlet by 5.8% in the first quarter. Royal Bank of Canada now owns 122,565 shares of the company’s stock worth $1,713,000 after buying an additional 6,736 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Grocery Outlet by 14.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 357,856 shares of the company’s stock valued at $5,003,000 after acquiring an additional 44,214 shares during the last quarter. AlphaQuest LLC raised its stake in shares of Grocery Outlet by 327.7% in the 2nd quarter. AlphaQuest LLC now owns 5,761 shares of the company’s stock valued at $72,000 after acquiring an additional 4,414 shares in the last quarter. Bank of Montreal Can lifted its holdings in Grocery Outlet by 5.1% in the 2nd quarter. Bank of Montreal Can now owns 16,525 shares of the company’s stock worth $205,000 after purchasing an additional 803 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its holdings in Grocery Outlet by 7.4% in the 2nd quarter. Bank of New York Mellon Corp now owns 642,806 shares of the company’s stock worth $7,984,000 after purchasing an additional 44,427 shares during the last quarter. 99.87% of the stock is owned by institutional investors and hedge funds.

Key Grocery Outlet News

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: Grocery Outlet retained Gordon Brothers to market retail leasehold opportunities as part of its store-portfolio optimization, which could recover value from closed or underperforming locations. Gordon Brothers Retained by Grocery Outlet
• Neutral Sentiment: Management set FY2026 EPS guidance (about $0.45–$0.55), giving a baseline for expectations but signaling a recovery path that will depend on fixing value perception and comp trends. Q4 2025 earnings call transcript
• Negative Sentiment: Q4 results missed expectations: EPS of $0.19 vs. $0.21 estimate, revenue slightly below estimates, comps weakened. Management reported a large operating loss driven by $113.8M long‑lived asset impairment, $149.0M goodwill impairment and $45.9M of restructuring charges — contributing to a FY2025 net loss (reported coverage highlights these write‑downs). Investor Alert / Impairment Details
• Negative Sentiment: Company announced plans to close 36 stores after a $224.9M FY2025 net loss — a sign management is accelerating portfolio cuts but also acknowledging execution and merchandising issues that hurt traffic and margins. Grocery Outlet To Close 36 Stores
• Negative Sentiment: Multiple brokerages cut ratings and price targets (Jefferies, Morgan Stanley, Wells Fargo, DA Davidson, Telsey, Craig Hallum), citing the downbeat quarter, weaker comps and the need to restore value perception — analyst downgrades amplify selling pressure. Analysts Slash Forecasts After Q4
• Negative Sentiment: Shareholder‑side investigations have been announced (multiple firms), alleging possible misstatements around financials and operations — legal risk and potential disclosures add uncertainty. Ademi LLP Investigation
• Negative Sentiment: Market commentary and analysis point to weakening customer perception of value, increased promotional activity and competitive pressure — all factors that suggest the recovery could be prolonged. Why Grocery Outlet Stock Crashed Today

About Grocery Outlet

Grocery Outlet Holding Corp. (NASDAQ: GO) is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company’s unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.